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My Spouse's Business and Equitable Distribution

Posted by Kathleen Murphy | Apr 10, 2019

It is important that you join your spouse's corporation pursuant to N.C. Gen. Stat. §50-20 and Rule 19 of the North Carolina Rules of Civil Procedure.

In one recent case in Wake County, the Defendant had an LLC that had no assets as of the date of separation.  At trial, the Defendant testified that after the date of separation, he transferred assets he did not actually own on or before the date of separation (Defendant testimony) into the LLC because he had subsequently purchased the assets from a family member.

The court held the assets were not owned by the parties before the marriage.   However, if the Court had ruled the assets were marital, it would have been necessary to join the corporation to distribute the assets.

The UNC School of Government published a summary of this issue in February, 2016 and it is a great read.

 Click Here to Read UNC School of Government Blog

About the Author

Kathleen Murphy

Kathleen Murphy is graduate of North Carolina State University with a B.A. in Political Science, 1985. She attended Campbell University Law School and received her Juris Doctorate, 1988. Ms. Murphy has been a family law attorney for over 30 years and has limited her practice solely to family law since 1988. On October 1, 2023, Kathleen accepted a position as a senior attorney with Triangle Divorce Lawyers and she can be reached at [email protected]. Ms. Murphy is a member of the North Carolina State Bar, North Carolina Bar Association, NCBA Family Law Section Member, is a trained Family Financial Mediator and a trained Child's Advocate. Ms. Murphy is married to a City of Raleigh Firefighter and has four children, three daughters and a son. Ms. Murphy is a contributor to an International podcast. Crime Stories with Nancy Grace is broadcasted daily and you can hear Ms. Murphy's comments on cases involving victims of family crimes and the impact of family court.